Cramer's 'Mad Money' Recap: Wade In with Kaydon
05/27/08 - 07:43 PM EDT
TheStreet.com Staff
Click here for an archive of Cramer's "Mad Money" recaps.
"Wind power is hands-down the best form of renewable energy," Jim Cramer told viewers of his "Mad Money" TV show on Tuesday. That's why he once again declared 2009 to be the year of wind power and recommended Kaydon (KDN Quote - Cramer on KDN - Stock Picks) as the next in his series of "stealth" wind power stocks. Cramer explained that while Kaydon is best known for its industrial bearing business that mainly serves heavy industry as well as the aerospace and defense markets, the company is also the market leader in low-friction wind turbine bearings. Cramer compared Kaydon to his other wind-power plays Trinity Industries (TRN Quote - Cramer on TRN - Stock Picks) and Owens Corning (OC Quote - Cramer on OC - Stock Picks). Both of these are also large manufacturing companies with small, but growing wind power segments. Wind power currently only accounts for 8% of Kaydon's sales, but is 50% of the company's current backlog. According to Cramer, wind power should account for 20% of the company's sales by 2009 and is expected to triple by 2010. Kaydon is currently the market leader in wind-power bearings, with over 50% market share.
Cramer: What to Buy as Oil Drops |
Get Some SPX
Cramer highlighted SPX (SPW Quote - Cramer on SPW - Stock Picks) as the next in his series of "new tech" companies investors need to own. He returned to his thesis that the best investment ideas are not in old tech names like Intel (INTC Quote - Cramer on INTC - Stock Picks) and Cisco (CSCO Quote - Cramer on CSCO - Stock Picks), but are instead in new tech -- companies working to solve the world's real problems. Cramer explained that of SPX's four divisions, all have at least some exposure to alternative energy, industrial automation, or power conservation and all of them are in bull market mode. Two of the company's main businesses are in manufacturing values for nuclear reactors and crystal growers for the solar industry, he noted.
Cut and Run
Cramer provided viewers with an update of the "From Russia With Love" portfolio of his five favorite Russian stocks. Cramer recommended the portfolio on April 7, and since then the stocks are up an average of 13.7%, while the S&P 500 is up less than 1%. But Cramer said even with the portfolio's stellar performance, changes still need to be made. Cramer's Russian portfolio included Mechel (MTL Quote - Cramer on MTL - Stock Picks), Wimm-Bill-Dann Foods (WBD Quote - Cramer on WBD - Stock Picks), Central European Distribution (CEDC Quote - Cramer on CEDC - Stock Picks), Central European Media (CETV Quote - Cramer on CETV - Stock Picks) and CTC Media (CTCM Quote - Cramer on CTCM - Stock Picks). He said that while the first four stocks have been and continue to be fabulous, the fifth stock, CTC Media, has been a disaster. According to Cramer, its time to cut and run with CTC Media. While he still likes the strong media story in Russia and surrounding countries, he said CTC has proven to be just too small to take advantage of the growth. While rival Central European Media has an 18%-40% audience share in its markets, CTC only has a 12-13% share in its markets. Cramer also feels CTC paid too much for a recent acquisition, which is further weighing down the stock. In the interest of diversification, Cramer said both CTC and Central European Media shouldn't have been in the portfolio together to begin with. He said Central European Media is the way to play going forward.Mad Mail
In the "Mad Mail" viewer feedback segment, Cramer told a viewer that he's less bullish on GameStop (GME Quote - Cramer on GME - Stock Picks) after the company's recent lackluster conference call. He told another viewer that he recommends selling Apple (AAPL Quote - Cramer on AAPL - Stock Picks) in and around the announcement of the next version of its popular iPhone. In a final note, Cramer told viewers that NuCor (NUE Quote - Cramer on NUE - Stock Picks) has finally gone low enough to be attractive and he'd be a buyer at these levels.Lightning Round
In the Lightning Round, Cramer was bullish on First Solar (FSLR Quote - Cramer on FSLR - Stock Picks), Applied Materials (AMAT Quote - Cramer on AMAT - Stock Picks), Nordic American Tanker Shipping (NAT Quote - Cramer on NAT - Stock Picks), Frontline (FRO Quote - Cramer on FRO - Stock Picks), Procter & Gamble (PG Quote - Cramer on PG - Stock Picks), Caterpillar (CAT Quote - Cramer on CAT - Stock Picks) and Petroleo Brasileiro (PBR Quote - Cramer on PBR - Stock Picks).
Cramer was bearish on
Capital Trust (CT Quote - Cramer on CT - Stock Picks),
LDK Solar (LDK Quote - Cramer on LDK - Stock Picks),
Diana Shipping (DSX Quote - Cramer on DSX - Stock Picks),
Navios Maritime (NM Quote - Cramer on NM - Stock Picks)
and Capstone Turbine (CPST Quote - Cramer on CPST - Stock Picks).
Jim Cramer writes about all the stock trades in his charitable trust for TheStreet.com in Action Alerts Plus. Recent stocks he's traded in this account include Schering-Plough(SPG Quote - Cramer on SPG - Stock Picks), Yamana Gold(AUY Quote - Cramer on AUY - Stock Picks) and Abbott Laboratories(ABT Quote - Cramer on ABT - Stock Picks). Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.
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